GHL System Berhad Annual Report 2018

G H L S y s t e m S B e r h a d ( 2 9 3 0 4 0 - D ) 100 NOT ES TO THE F I NANC I A L STAT EMENTS 3 1 D e c e m b e r 2 0 1 8 C O N T ’ D 15. INVESTMENTS IN SUBSIDIARIES (cont’d) (d) The Group reviews the investments in subsidiaries for impairment when there is an indication of impairment. The recoverable amounts of the investments in subsidiaries are assessed by reference to the fair value less cost to sell of the underlying assets or the value-in-use of the respective subsidiaries. The value-in-use is the net present value of the projected future cash flows derived from the business operations of the respective subsidiaries discounted at an appropriate pre-tax discount rate. For such discounted cash flow method, it involves the use of estimated future results and a set of assumptions to support their income and cash flows. Significant judgements and estimates had also been used to determine the key assumptions applied to the cash flow projections, which includes the projected earnings before interest and tax margins, growth rates, and the appropriate pre-tax discount rates used for each of the subsidiary. Impairment losses are made when the carrying amount of the investment in subsidiaries exceed its recoverable amount. (e) The details of the subsidiaries are as follows: Name of company Country of incorporation Effective interest in equity Principal activities 2018 2017 % % GHL Transact Sdn. Bhd. # Malaysia 100.00 100.00 Sales and rental of EDC equipment and its related software and services, inclusive of installation, training and maintenance. GHL EFTPOS Sdn. Bhd. # Malaysia 100.00 100.00 Sales and rental of EDC equipment and its related software and services, inclusive of installation, training and maintenance. GHL CardPay Sdn. Bhd. # Malaysia 100.00 100.00 Issue and/or acquire all credit card, debit card, prepaid card, loyalty card and electronic cash transactions carried out by the card holders at acquired merchants on behalf of the card issuer and for that purpose to provide the necessary facilities and infrastructure that facilitates the transactions electronically and sale and rental of hardware and its related services, inclusive of installations, training and maintenance. GHL Payments Sdn. Bhd. # Malaysia 100.00 100.00 Sales and rental of EDC equipment and its related software and services, inclusive of installation, training and maintenance. GHL International Sdn. Bhd. # Malaysia 100.00 100.00 Dormant. GHL Asia Pacific Limited # Labuan, Malaysia 100.00 100.00 Investment holding. GHL Global Sdn. Bhd. # Malaysia 100.00 100.00 Develop and sale of Net.Point software solution; software programmes and other related products and services.